EX-99.1 2 dex991.htm PRESENTATION PRESENTATION
Exhibit 99.1


2
Forward-Looking Statement
This presentation contains forward-looking
statements, which are subject to risks and
uncertainties. Additional discussion of factors
that could cause actual results to differ materially
from management’s projections, forecasts,
estimates, and expectations is contained in the
CarMax, Inc. SEC filings.


3
CarMax Today
Used Car Superstores
Nation’s largest used car retailer
71 used car superstores
34 markets
FY06:
Sales:        $6.3 Bn     +19%
Net profit:  $134 mm  +32%
Orlando
Tampa
Miami / Ft. Lauderdale
Baltimore / DC
Chicago
Charlotte
Greensboro
Greensboro
Mid-sized Markets (26)
Large Markets (8)
Greenville
Birmingham
Memphis
Louisville
Indianapolis
Columbia
1
1
2
1
2
1
1
1
1
2
2
2
2
2
2
5
4
4
8
4
4
1
1
1
1
2
5
1
1
Jacksonville
Houston
San Antonio
Austin
Sacramento
1
Salt Lake
City
Nashville    
Knoxville    
Albuquerque
Las Vegas
Kansas City
Richmond
Atlanta
Raleigh
Los Angeles
1
Va. Beach
1
1
Wichita
1
Hartford
2
Columbus
1
Oklahoma City
Dallas/Fort Worth


4
CarMax Today
Sustainable Store Growth Restarted
0
0
1
2
4
7
18
29
33
33
35
42
49
58
67
78
0
20
40
60
80
Prototype
Development
Prototype
Refinement
Competitive
Response
(Rapid Growth)
Stabilization
Growth Restart


5
CarMax Today
Unit Growth Continued
0
0
1,300
5,574
19,618
31,701
56,594
96,915
111,247
132,868
164,062
190,135
224,099
253,168
289,888
0
50,000
100,000
150,000
200,000
250,000
300,000
FY92
FY93
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
Competitive
Response
(Rapid Growth)
Stabilization
Growth Restart
Prototype
Refinement
Prototype
Development


6
CarMax Today
Profitability Established
$0
($25)
($2)
($4)
($5)
($9)
($34)
($24)
$.5
$44
$89
$90
$110
$101
$134
($50)
$0
$50
$100
$150
$200
FY92
FY93
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
Prototype
Development
Prototype
Refinement
Competitive
Response
(Rapid Growth)
Stabilization
Growth Restart
* Revised for the effects of stock-based compensation expense


7
Results
FY06
FY07e
Used unit comp growth
4%
2%-- 8%
Total sales growth
19%
Net earnings growth
32%
EPS
$1.27
$1.25 -- $1.47
After adoption of SFAS 123R


8
1Q FY07 Results
FY07
Used unit comp growth
6%
Used unit sales growth
14%
Total sales growth
19%
Net earnings growth
54%
EPS
53¢
After adoption of SFAS 123R


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What Is CarMax?
Unique retail opportunity
Provides superior economic returns


10
CarMax Sells More Cars
Unit Sales / Store
CarMax (FY06)
5,040
used
Public new car dealers
1,640
new & used
Average new car dealer
1,325
new & used
Source: CarMax estimates and NADA 2005


11
CarMax Gains Market Share
Used Car 
Comp Unit Sales
2005
4-Year
Average
CarMax (FY06)
+4%
+5%
Public new car dealers
0%
(4)%
Source: Company reports and CarMax estimates


12
Why Does CarMax Work?
Used car focus
Consumer-preferred concept
Process-driven competitive advantages
Organic growth plan


13
Used Car Focus
Used Unit Sales
Mix %
Per month
CarMax (FY06)
93%
420
Public new car dealers
35%
50
Average new car dealer
41%
45
Source: Published auto retailer reports and NADA 2005


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Why Used Cars?
Huge, fragmented business
Non-commodity
Stable


15
Used Vehicle Sales Stable
Source: Manheim Auctions
-12.0%
-6.0%
0.0%
6.0%
12.0%
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005e
% Change New Vehicle Unit Sales
% Change Used Vehicle Unit Sales


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Consumer-Preferred Concept
Low, no-haggle prices
Huge selection of late-model
used cars
Guaranteed quality
Customer-friendly service


17
Proprietary Operating Process
Finance
Originations
Purchasing/
Inventory
Management
Reconditioning
Consumer
Consumer
Offer
Offer


18
Fortune Magazine Recognition
Two years running (2005, 2006)
Only auto retailer or manufacturer
on list
Voted #1 in Automotive Retailing


19
Organic Growth
Creates value
Not acquisition dependent
Not 3
rd
-party constrained


20
Opportunity Scale
Market:
$280 Bn
Currently
30% of U.S.
Mature Stores
8% -
10% market share


21
Growth Plan
(FY06 –
FY10)
5-year goal:
$10 -
$12 Bn
Comp used unit growth:
4%  -
8%
New store openings
15% -
20%
New store openings
Store margin expansion
Fixed overhead leverage
Profit Growth
Sales Growth


22
FY07 Planned New Superstores
Fredericksburg
(DC / Richmond)
Gastonia
(Charlotte)
1
1
1
Austin South
Atlanta
Burbank
(Los Angeles)
New Stores Remaining to be Opened
New Stores Remaining to be Opened
1
Oklahoma City
1
Hartford
Charlottesville
(Richmond)
2
Columbus
1
Car Buying Center Test
Car Buying Center Test
1
1
Fresno
New Stores Opened to Date
New Stores Opened to Date
1
New Haven


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